Cahill urges state to settle Pike suit out of court

Treasurer Tim Cahill has added a new dimension to the class-action lawsuit against the Turnpike Authority and its tolls by recommending state officials try to settle the matter out of court.

Aaron Wasserman/Daily News staff

Treasurer Tim Cahill has added a new dimension to the class-action lawsuit against the Turnpike Authority and its tolls by recommending state officials try to settle the matter out of court.

Cahill also said he agrees Turnpike tolls have been subsidizing other drivers' use of the Big Dig, but declined to say whether he believes that is illegal, as the lawsuit's plaintiffs argue.

The lawsuit, which claims tolls have turned into an illegal tax by being used to pay for the Big Dig's debt, returns to court Aug. 6. A Superior Court judge may issue a restraining order then to stop the Turnpike Authority from spending toll money on the Big Dig.

Cahill said a settlement could come at a far smaller cost than a judge's ruling in favor of the trust created to represent Turnpike drivers. The state assumes the Turnpike Authority's liabilities Nov. 1, as part of a reform bill passed by the Legislature last month.

"I believe the people of MetroWest and the north, who have been arguing for years, 'Why are we paying when no one else is paying?' have a legitimate gripe. If it is legitimate, I don't know why we'd wait for the court to tell us that at a significantly higher cost," he said.

On Monday, Cahill sent a letter to Gov. Deval Patrick and Attorney General Martha Coakley, recommending they resolve the lawsuit.

More than 2,000 people have joined the plaintiffs' trust so far. A study commissioned by their lawyers says about $450 million has been diverted in the past three years from tolls to the Big Dig.

Cahill's letter prompted different reactions from people involved in the case. Plaintiffs were excited, while the Turnpike Authority's executive director criticized Cahill.

Patrick's and Coakley's offices declined comment.

"I'm very happy that people such as Cahill are saying we should resolve this issue and demand that toll equity be enforced," said Robert Ackley, a Southborough resident who is one of the lead plaintiffs.

"If the state and the Turnpike Authority can come together to solve the 'swaption' issue, I think they can come together with the tollpayers and remedy our situation also," he said, referring to the interest-rate swaps with UBS AG that could have cost the Turnpike Authority about $250 million in early termination payments but have been defused for now.

Turnpike Executive Director Jeffrey Mullan said in a statement that Cahill's comments "could compromise the Turnpike Authority's defense" and that the authority "is vigorously defending against the litigation."

Cahill, an independent who's expected to run for governor next year, said he did not write the letter with politics in mind. He said he has been arguing for the past year that the state should not put its full credit behind the Turnpike Authority's finances.

A possible payout, should Turnpike drivers win the lawsuit, is too big to ignore.

"Waiting, especially when the state is going to be responsible for the Turnpike Authority's liability come Nov. 1, is putting all the taxpayers at a potential risk," Cahill said.

(Aaron Wasserman can be reached at 508-626-4424 or awasserm@cnc.com.)

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